By Amin Kef (Ranger)

Sierra Leone’s mining sector is recording strong growth in exports, production and community benefits following sustained reforms, the Minister of Mines and Mineral Resources, Julius Daniel Mattai, has disclosed.

The Minister made those remarks while speaking as a key panelist on the theme: “The Economy, Energy and Productivity” during the Civic Festival 2025, organized by the Ministry of Information and Civic Education on Saturday, 13 December 2025, at the Miatta Conference Hall, Youyi Building, in Freetown. His presentation formed part of a broader national conversation on economic transformation, productivity and the strategic management of Sierra Leone’s natural resources.

Addressing participants drawn from Government institutions, civil society, development partners, and the private sector, Minister Julius Daniel Mattai revealed that mineral exports for the first three quarters of 2025 were approaching US$900 million, representing a 14–15 percent year-on-year increase. He described the performance as a clear indication that reforms undertaken in the mining sector are yielding measurable results for the economy and mining communities.

According to the Minister, non-tax revenues, largely derived from license fees and royalties, reached approximately US$53 million by the end of September 2025, with projections of about US$60 million by year’s end. He attributed that growth to policy adjustments, including the increase in annual fees for large-scale mining licenses from US$500,000 to US$1 million, a move aimed at strengthening state revenue and ensuring serious investor commitment.

Julius Daniel Mattai disclosed that 34 large-scale mining licenses are currently in force across the country. While not all license holders are exporting yet, he noted that several projects are actively producing, with 17 additional projects under development and three nearing completion. He projected that the majority of those operations would be fully operational by 2027, significantly expanding Sierra Leone’s mineral production base.

Emphasizing the importance of exploration, the Minister stated that sustainable growth in mining depends on continuous discovery of new mineral deposits. He explained that although Sierra Leone experienced a moratorium on exploration in the past, the current policy environment recognizes exploration as critical to attracting long-term investment and unlocking the country’s vast geological potential.

He contrasted current progress with the situation prior to 2018, when Sierra Leone had only two small-scale mining licenses, largely confined to gold and diamonds. Today, he said, the country boasts 27 small-scale licenses covering gold, diamonds and heavy mineral sands such as rutile, reflecting improved regulation, diversification, and increased participation by local operators.

A major highlight of the Minister’s presentation was the advancement of industrial gold mining, a sector that had remained largely undeveloped despite decades of artisanal activity. He noted that Sierra Leone only began issuing large-scale gold mining licenses in 2019 and 2020, marking a turning point in the sector.

He identified Valunia Chiefdom and the Kumahun area as key mineralized zones where licenses have been granted, naming FG Gold and Gold Lion as leading developers. FG Gold, he disclosed, is expected to reach full production by the third quarter of 2026.

The Minister revealed that official gold exports in 2024 stood at approximately 127 kilograms, but the entry of FG Gold and Gold Lion could push annual official exports to between 10 and 11 metric tons; a historic first for Sierra Leone. At prevailing global gold prices, he said that expansion would significantly boost royalty revenues, create employment opportunities and contribute to overall economic growth.

On heavy mineral sands, Minister Julius Daniel Mattai described a landmark development in local ownership. He recalled that the sub-sector had been dominated by foreign-owned companies since 1967, but announced that, for the first time, a company operating in this space is now owned and led by Sierra Leonean nationals. He described that achievement as a major breakthrough aligned with Government’s Local Content Policy and growing domestic technical capacity.

The Minister stressed that the Government is committed to ensuring Sierra Leoneans play a meaningful role across the mining value chain, not merely as labourers but as owners, managers and skilled professionals. He added that local participation must be matched with skills development to guarantee sustainability and competitiveness.

Community benefits featured prominently in the Minister’s address. He described reforms to community benefit sharing as one of the most impactful achievements of the current administration. Prior to 2018, mining communities received only 0.001 percent of the previous year’s gross exports. Under the revised legal framework, the minimum allocation has been increased to 1 percent, dramatically improving community earnings.

Minister Julius Daniel Mattai disclosed that the Community Development Fund has grown to over US$6.5 million in 2025, up from about US$1.8 million in 2024, with further increases expected in 2026 as more projects come on-stream. He said all large-scale and small-scale license holders are now legally required to sign Community Development Agreements, pay surface rents and comply with environmental obligations, including Community Development Action Plans under the Environment Protection Act.

Clarifying public perceptions around fiscal contributions, the Minister explained that mining royalties are not fixed at 3 percent, as commonly assumed, but vary by mineral commodity. He said the sector contributes to national revenue through multiple channels, including license fees, corporate income tax, withholding taxes, pay-as-you-earn and fuel import duties.

While taxation falls under the mandate of the Ministry of Finance, Julius Daniel Mattai said his Ministry works closely with Finance to ensure that 20 percent of royalty receipts are distributed within mining districts. To promote equity, the Government has also established a Mining District Development Fund, enabling non-mining chiefdoms within mining districts to benefit from mining revenues.

In concluding his remarks, the Minister said the reforms underway are designed to increase productivity, expand participation and ensure that mineral wealth translates into tangible development outcomes. He reaffirmed the Ministry’s commitment to transparency, community empowerment and economic resilience, noting that the mining sector remains a critical pillar in Sierra Leone’s broader development agenda.

“Our objective is clear,” he said. “To ensure that the growth of the mining sector delivers lasting value for communities, strengthens the national economy and contributes meaningfully to the prosperity of the people of Sierra Leone.” https://thecalabashnewspaper.com/mines-minister-highlights-major-gains-in-exports-gold-production-and-local-content-at-civic-festival-2025/